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Data center

Report identifies 10 states prepared for AI data center development

September 10, 2026

A new report ranking states’ efforts to build large-scale data centers has identified 10 that it said have sufficient resources to support them. 

A report by Texas-based TRG Datacenters analyzed 24 states with AI infrastructure already in development. The findings included data on each state’s data center power capacity, share of the state’s electricity they use, estimated carbon dioxide emissions and the percentage of the facilities located in areas with water constraints. 

High power capacity coupled with lower environmental impacts led to a higher relative readiness score, according to the report. 

Virginia ranked the highest with a score of 100. According to the report, the state has seven large data center sites and 33 percent of them are in high water stress areas. Approximately 5 percent of the state’s electricity is being used by data centers. 

Texas ranked in the middle of the pack with a readiness score of 80.8 despite having 13 large-scale data centers under development – the highest in the report. According to the report, 58.8 percent of the state’s data centers are mapped in high water stress areas. Approximately 2 percent of the state’s energy is being used by data centers. 

The report’s findings said the following 10 states – listed in order of readiness – were the most prepared to support large-scale data centers. 

  1. Virginia 
  1. Ohio 
  1. Tennessee 
  1. Georgia 
  1. Texas 
  1. South Carolina 
  1. Mississippi 
  1. New York 
  1. Oregon 
  1. Indiana 

Photo by Panumas Nikhomkhai from Pexels

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Miles Smith

Miles Smith has more than two decades of communications experience in the public and private sectors, including several years of covering local governments for various daily and weekly print publications. His scope of work includes handling public relations for large private-sector corporations and managing public-facing communications for local governments.

Smith has recently joined the team as a content writer for SPI’s news publications, which include Texas Government Insider, Government Contracting Pipeline and its newest digital product, Government Market News, which launched in September 2023. He graduated from Texas A&M University with a bachelor’s in journalism.

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